This past week, the US Dollar appreciated against its major counterparts following the 2018 US midterms and Fed rate decision. That loosely translated into gains against some of its ASEAN bloc currencies such as the Singapore Dollar and Malaysian Ringgit. The Federal Reserve increased rate hike bets, which helped send the SP 500 lower on Friday and could have knock-on effects for risk trends and ASEAN FX next.

The Ringgit was perhaps particularly vulnerable after the Malaysian central bank left rates unchanged at 3.25% as expected. Bank Negara Malaysia added that the current rate ‘is consistent with the intended policy